The Fair Credit Collection Act protects consumers from unreasonable collection action. Although the federal act only applies to outside collection agencies and to legal firms doing collection work, some states, as has been said, have passed state acts that have authority over in-house collection agencies. The acts prohibit the following practices:
- Using profane or obscene language.
- Threatening to harm you, publish your name, or get welfare or other government benefits discontinued.
- Claiming to be a law enforcement official or to send your letters on what appears to be a court form or government document.
- Contacting your employer, except to verify employment, or calling you at work if you request that they don't.
- Threatening to take property or garnish wages, unless they have a legal judgment to do so.
- Falsely claiming to be an attorney, or falsely claiming that legal action has begun, or falsely claiming the debt will be increased by fees.
- Calling after 9pm or before 8am.
Many collection agencies could not care less about these laws. They will always insist on talking over the telephone, since it will come down to your word against theirs. Always respond to a collection agency in writing and certify the letter. If your rights have been violated, contact the state attorney general's office, the Federal Trade Commission, or your state's collection regulation agency, if there is one. Complain in writing to the collection agency. A debtor can also request that the agency cease all contact except for pending action, such as a lawsuit if you don't want to talk to the collector or can't make an arrangement, you may wish to send him a letter telling him to cease contact (certified, of course). You should also contact the original creditor and let them know that you have been harassed. Bringing a small claims suit for violation of your rights is another action that can be taken. If the suit is valid, the collection agency will often settle by canceling the debt; you may even be able to receive monetary damages. Here are some examples of different harassment techniques used by outside collection agencies, both legal and illegal.
- Claiming that if the bill is not paid immediately, wages will be attached the next day illegal. A judgment is required in court before wages can be attached, and you would have to be served before there could be a judgment. If there hasn't been a lawsuit, except in the case of income taxes, wages cannot be attached.
- Threatening to tell employers about your delinquent bill. illegal.
- Threatening legal action when there is no intent to sue. This usually occurs on bills under $500. illegal;
- Repeatedly calling you for no apparent reason, just to rattle you. megal. One person retaliated by calling the collector three times for every one time he called him. He would ask stupid and redundant questions and use as much of the collector's time as he could. The collection agency's calls stopped.
- Calling your neighbors, even though your phone number and address are known, and having them place a note on your door for them. This more subtle form of harassment is probably legal but very unethical.
- Calling a former employer pretending to be an old friend and trying to get information. Legal. There have even been cases of co-workers being called and the debt being discussed.
- Calling your family, especially parents, and discussing your debt with them illegal in community property states. In one case the family was continually called and the father asked for by name. The collection agent knew that he had passed away three months earlier but wanted to harass the debtor.
